Kent Company's December 31, 2014 Trial Balance Includes the Following

Kent Company's December 31, 2014 trial balance includes the following accounts: Other information:
The mortgage payable is due in annual principal installments of $4,000 per year.
The note payable is due in full in 18 months' time.
Industry average working capital ratio is 2.5:1
Instructions
a. Prepare the current liabilities section of Kent's December 31, 2014 balance sheet.
b. Calculate and comment on Kent's working capital and current ratio.

Correct Answer:

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a.
b.
Current ratio ($83,200 ÷ $45,3...

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